U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19833 / September 14, 2006

Defendants Agree to Settle SEC Charges

The Securities and Exchange Commission today announced that it has reached an agreement to settle charges against TV Azteca, S.A. de C.V., Azteca Holdings, S.A. de C.V., Ricardo Salinas Pliego and Pedro Padilla Longoria. Under the settlement, all defendants have consented, without admitting or denying the allegations of the complaint, to the entry of a proposed final judgment, pending approval by the court, which would permanently enjoin them from future violations of certain provisions of the Securities Exchange Act of 1934, as set forth below. Salinas and Padilla have additionally agreed to pay disgorgement and penalties in excess of $8.5 million and further agreed, as an undertaking, not to serve as officers or directors of a U.S. public company for a period of five years, except under limited circumstances. Additionally, the Commission accepted the offers of settlement of TV Azteca, Grupo Elektra, S.A. de C.V., and Grupo Iusacell, S.A. de C.V., in anticipation of administrative proceedings pursuant to Section 12(j) of the Securities Exchange Act of 1934 to revoke the registration statements of these entities due to the respondents' failure to file reports in accordance with Section 13(a) of the Exchange Act.

The Commission's complaint, filed in January 2005, alleges that the defendants violated or aided and abetted violations of Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B), 13(b)(5), and 13(d) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 13a-14, 13a-16, 13b2-2, 13d-1 and 13d-2, thereunder. The Commission alleged that defendants failed to disclose the related party nature of a transaction involving Unefon, S.A. de C.V., a TV Azteca subsidiary, and Codisco, LLC, an entity in which Salinas held a beneficial interest.

Defendant Salinas agreed to consent to a final judgment that imposes a permanent injunction prohibiting future violations of Sections 10(b), 13(b)(5) and 13(d) of the Securities Exchange Act of 1934, and Rules 10b-5, 13a-14, 13b2-2, 13d-1 and 13d-2 thereunder, or aiding and abetting violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-16 thereunder and orders him to pay $7,500,000 pursuant to Section 21(d)(3) of the Exchange Act and $1, which shall serve as a predicate to converting the funds paid into a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002. Defendant Padilla agreed to consent to a final judgment that imposes a permanent injunction prohibiting future violations of Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934, and Rules 10b-5, 13a-14, 13b2-2and 13d-2 thereunder, or aiding and abetting violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-16 thereunder and orders him to pay $1,000,000 pursuant to Section 21(d)(3) of the Exchange Act and $1, which shall serve as a predicate to converting the funds paid into a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002. Salinas and Padilla additionally agreed, as an undertaking, not to serve as an officer or director of a U.S. public company for a period of five years, except under limited circumstances. TV Azteca and Azteca Holdings have agreed to settle the Commission's enforcement action by consenting to final judgments that impose permanent injunctions prohibiting each from future violations of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-16 thereunder. Additionally, TV Azteca, Grupo Elektra and Grupo Iusacell, without admitting or denying the Commission's findings, each consented to the entry of an Order Instituting Proceedings, Making Findings and Revoking Registration of Securities Pursuant to Section 12(j) of the Securities Exchange Act of 1934. The orders were instituted today and the revocations of registration are effective immediately.

The proposed judgments provide that, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, the monies paid will be deposited with the Court and used to establish a Fair Fund to compensate affected investors. The Commission is today filing the proposed final judgments with the U.S. District Court in the District of Columbia for consideration and approval. All defendants consented to the entry of the judgments without admitting or denying the allegations in the complaint.